bluCard Basic Training

Contact Information

Berkeley Card Program

Email

creditcard@berkeley.edu

Card Program Website

BFS Support

  • BFS system issues
  • Training materials

Email

bfs@berkeley.edu

Phone

510 664 9000, options 1, then 2

BFS Support Website

Resources

bluCard Training and Help

Subscribe to the Card Program Announcements mailing list

Apply for a new bluCard

Get access to the BFS Reconciliation Staging Table

Successful completion of this course is required for all bluCard Cardholders, Reconcilers, and Approvers.

Last updated: March, 2021

Course Objectives and Topics

Decorative separator line

bluCard Basics

The bluCard is a university-issued procurement card that enables a departmental cardholder to purchase low-value goods or services for university business purposes.

The bluCard program is intended to help departments purchase low-value goods and services when it is not possible or would be difficult to obtain a Purchase Order through BearBuy. UC Berkeley's bluCard program operates in accordance with the Low Value Purchase Authority (LVPA) defined by the Office of the President – cardholder purchases cannot exceed $9,999 (including tax and shipping and handling).

The bluCard is a 'corporate liability' card - the university pays the bills directly to U.S. Bank. The personal credit rating of the Cardholder is not involved with the issuance or use of the bluCard.

The bluCard is not a 'Department card' – cards are issued to a specific individual who is the only person who may use that particular bluCard. Cardholders cannot authorize any other staff member to use the card on their behalf.

The bluCard may be used to make purchases from local and diverse businesses who do not have the ability to accept purchase orders. The bluCard is used with vendors who accept the Visa card.

Once the purchase is made, the merchant transmits the charge to U.S. bank who pays the merchant within 24 to 48 hours. U.S. Bank sends daily transaction files to UC Berkeley, the files are loaded daily to a 'staging table' in BFS, and Disbursements pays U.S. bank. Departments must reconcile their bluCard transactions and approve them in BFS within a 15-day Staging Period.

Decorative separator line

bluCard Terminology

Cardholder Account Form (CAF)

The form on which all requests for additions or changes to cardholder accounts must be made. The authorized or delegated signer must approve any request.

Card Limits

The limits to the dollar amounts spent and the number of transactions made for any one card. The limits are requested on the Cardholder Account Form, which is approved by the Card Programs Manager and enforced at the point of sale.

Policy BFB-BUS-43, Part 6: Material Management-Procurement Card Programs

The major UC policy manual governing card program processes and procedures on campus.

Low Value Purchasing Authorization (LVPA)

A campus delegation of purchasing authority up to $9,999.00 for department buyers who perform business transactions as purchasing agents representing the university and the regents.

Decorative separator line

BFS Terminology

Berkeley Financial System (BFS)

UC Berkeley's web-based system for managing financial tasks, including reconciling card usage.

Billing Date

This is the day on which transactions are charged to UC Berkeley by U.S. Bank, which is generally three (3) business days before the staging date.

Staging Date

Transactions are loaded into BFS each business day and made available for reconciliation. Transactions must be verified and approved in BFS during the 15-day staging period (from staging date to clear date).

Clear Date

The last day that transactions are available for reconciliation. Between 7 to 9 pm each day, all transactions from the staging date 15 days prior will be cleared from BFS and posted to the General Ledger, regardless of the statement status.

Decorative separator line

Forms and Procedures

MOA - Memorandum of Agreement

  • Authorizes the use of a bluCard in the department
  • Identifies the campus unit(s) involved and the Authorized and/or Delegated Signer(s)
  • Also used for updates to organizational structure or Authorized Signer
  • The MOA must be kept current

CAF - Cardholder Account Form

  • Used to open, modify, or close a bluCard account
  • The CAF for a new cardholder also designates a BFS Reconciler and BFS Approver for that account

SARA - System Access Request Authorization

  • Access to the BFS screens for the Reconciler and Approver is requested by the department via SARA
  • This should be done before submitting a CAF to Card Program Services

UC Learning Center

  • Delegated participants associated with a card (cardholder, reconciler, approver) must pass training before the card is issued
  • All participants must complete refresher training annually

BFS Listserve

Decorative separator line

Delegated Roles and Responsibilities

Authorized Signer

  • Overall responsibility for bluCard purchases in the department
  • Assigns program roles
  • Signs MOA and CAF

Delegated Signer

  • Optional role
  • Authorized to act in the place of the authorized signer

Cardholder

  • Places orders
  • Gathers documentation
  • Ensures documentation is provided in a timely manner for reconciliation and approval in BFS

Reconciler

  • This person may also be a cardholder
  • Ensures documentation is complete and correct
  • Reconciles receipts in BFS
  • Corrects charstring
  • Accrues use tax
  • Verifies transactions in BFS

Approver

  • Reviews verified transactions
  • Notifies the cardholer and/or reconciler of any errors
  • Approves transactions in BFS
Decorative separator line

Separation of Duties

To ensure proper review of transactions, at least two people must be involved with every transaction - the Cardholder and a BFS approver who is not a subordinate of the Cardholder.

Cardholder/Reconciler and Approver

  • The cardholder/reconciler makes the purchase, collects the documentation, reconciles receipts in BFS, and saves the transaction as 'Verified'
  • The approver reviews the verified transaction in BFS and documentation for correctness, and saves the transaction as 'Approved'
  • This is considered a best practice

Cardholder, Reconciler, and Approver

  • The cardholder makes the purchase
  • The reconciler collects the documentation, reconciles receipts in BFS, and saves the transaction as 'Verified'
  • The approver reviews the verified transaction in BFS and documentation for correctness, and saves the transaction as 'Approved'

Cardholder and Reconciler/Approver

  • The cardholder makes the purchase
  • The reconciler/approver collects the documentation and, acting in the approver role, checks for correctness, reconciles receipts in BFS, and saves the transaction as 'Approved'
Decorative separator line

Cardholder Responsibilities

The bluCard holder:

  • Has been delegated Low Value Purchase Authority (LVPA) to use a procurement card by the department's authorized signer
  • Ensures transactions are pre-approved per policy
  • Ensures sufficient vendor and departmental documentation is provided timely for reconciliation and approval in BFS
  • Promptly processes all transaction-related business, including resolution of merchant and bank disputes, credits, and reporting lost or stolen cards and suspected fraudulent transactions
  • Safeguards the card and account number by not sharing the card number with colleagues and only providing it to suppliers or vendors
  • Cardholders (and their BFS approvers) are expected to be familiar with university purchasing policies found on the Supply Chain Management website, and to know what may or may not be purchased with the bluCard

The cardholder has been delegated Low-Value Purchasing Authority by the department's authorized signer, and acts as a purchasing agent on the behalf of UC Berkeley.

The cardholder must:

  • Ensure all transactions comply with bluCard Program and university policies and procedures
  • Safeguard the account number and card, and in the event of loss, theft or fraud, contact U.S. Bank and the UC Berkeley Card Program immediately
  • Ensure purchases are reconciled in BFS in a timely manner; particularly chartstring, document upload, and document description
  • Confirm that that business information is updated via CAF if it changes
  • Complete the annual refresher training course every 12 months
  • Resolve any discrepancies with the merchant; arrange for credits and returns

As a participant in the bluCard Program, it is incumbent upon you to ensure that the policies and procedures of the program are followed throughout the purchasing process.

Reconciler Responsibilities

Cardholders typically act as their own reconciler, though in some instances a different employee does so on their behalf.

Reconcilers are responsible for ensuring that the record for each individual transaction in BFS matches the supporting documentation for transactions, including:

  • Entering the chartstring specifically authorized for the transaction
  • Updating the description field with a short note about the purchase
  • Uploading backup documentation using the 'Add Comment' feature
  • Adding any notes to the file for unusual circumstances that took place

When the information in BFS matches the information on the backup documentation for the transaction, the reconciler changes the status of the transaction to 'Approved' to signal to their approver that they can begin reviewing the transaction.

Approver Responsibilities

The approver is responsible for double checking the work of the reconciler and ensuring that all UC Berkeley policies were followed. In the event that part of the transaction does not match the paperwork or needs to be adjusted in some way, the approver has the ability to update all aspects of the transaction and does not need to return the transaction to the reconciler to do so.

Once all elements of the transaction have been correctly entered into BFS, the approver sets the status of the transaction to 'Approved,' which lets the Card Program know that two different sets of eyes took a look at the transaction.

Approvers are responsible for ensuring transactions from the cardholders they are assigned to are being properly reconciled in a timely manner.

Decorative separator line

Purchasing Policy

What is Allowed

Goods or services within the university's Low-Value Purchase Authorization (LVPA) limit, from a non-restricted merchant.

This includes, but is not limited to:

  • Subscriptions and memberships
  • Sympathy cards, Thank You cards, Gift Certificates
    • Cannot be redeemable for cash or used for food
  • Conference registration
    • Cannot include meals or lodging, unless the registration fee is all-inclusive and cannot be itemized
  • Meeting room rentals
    • Cannot include meals or lodging
  • Low-value emergency equipment repairs
  • Certain standing orders
    • For example: water delivery

Knowing the Limits

Dollars per Month

  • The amount that may be charged on a card in one month is $100,000

Dollars per Day

  • The amount that may be charged on a card in one day is $50,000

Dollars per Transaction

  • The amount that may be charged on a card in one purchase is $5,000

Transactions per Month

  • The number of times a card may be used in one month is 999

Transactions per Day

  • The number of times a card may be used in one day is 99

MCC - Merchant Category Codes

  • Each vendor is assigned an MCC by their bank
  • The bluCard is programmed by default to allow MCCs assigned to the types of merchants who typically sell goods and services related to typical business purchases

Restrictions

As a cardholder, in addition to restrictions already noted, you may encounter proposed transactions such as:

  • 'Split purchases' which exceed your delegated authority, as established in the Cardholder Account Form (CAF)
  • Purchases that violate or exceed other established university policy or policy limits
  • Purchase of services or other items requiring a signed contract

If you receive a purchase request which would violate your purchasing authority, decline and state your reasons to the requester. If you encounter resistance, please discuss your concerns with your supervisor, and/or contact the Card Program at creditcard@berkeley.edu.

Restricted Items

Items that pose high risks to UC Berkeley are restricted items and must be purchased by Campus Buyers, including the following:

  • Controlled substances, including narcotic and non-narcotic drugs
  • Live animals
  • Employee/Vendor transactions (please refer to the Doing Business with UC Berkeley page for more information)
  • Explosives
  • Firearms and ammunition
  • Any purchase requiring a signed contract

Restricted Items vs. Merchants

It is the cardholder’s responsibility to determine if a purchase is allowed or not allowed prior to performing the transaction. You cannot rely on the MCC system to block the purchase of an item that you are not allowed to buy.

  • If the item is allowed in the bluCard program and the supplier MCC is unblocked by default, then it is okay to purchase the item for an approved university event (within cardholder limits)
  • If the item is allowed in the bluCard program and the supplier MCC is blocked by default, then in special circumstances, the authorized signer may request an exception to unblock the MCC to allow for the purchase
  • If the item is not allowed in the bluCard program and the supplier MCC is unblocked by default, then do not purchase the item, even though the card would be accepted
  • If the item is not allowed in the bluCard program and the supplier MCC is blocked by default, then the purchse can not be made

Conflict of Interest

Conflicts of Interest may occur when individuals make purchases based on personal, rather than professional, relationships.

Examples include (but are not limited to) doing business with:

  • A family member, either immediate or near relative
  • A neighbor, friend, or acquaintance
  • Anyone who offers a purchaser an incentive or gifts for personal use, such as baseball or football tickets, meals, etc.
  • A current or former UC employee of any UC campus or entity

In rare situations, the only source for the item you require may fall in this category. You must work with your campus buyer and/or Supply Chain Management to request permission for such a purchase.

Acceptance of Gifts and Gratuities

All university officers and employees are expected to act with integrity and good judgment and to recognize that the acceptance of personal gifts from those doing business or seeking to do business with the university, even when lawful, may give rise to legitimate concerns about favoritism depending on the circumstances.

BUS-43, Exhibit B, Principle 4

Refrain from soliciting or accepting money, loans, credits, or prejudicial discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, purchasing decisions.

For more information on Conflict of Interest and/or Code of Ethics, please refer to UC Berkeley's Conflict of Interest policy.

Decorative separator line

Making bluCard Purchases

Prior to the Purchase

The bluCard holder must obtain evidence of pre-approval before placing an order.

Methods of documenting pre-approval include:

  • Purchase approver's signature on order request form
  • Email from purchase approver
  • bluCard order tracking in BearBuy

The documentation must show that approval is based on a reasonably detailed description of the proposed purchase, including:

  • The requested goods/services and expected costs
  • Funding/chart string(s) to be charged
  • Business purpose, if it is not self-evident

The bluCard holder, and only the holder, may use the card to make purchases of goods and services.

Purchases via the Internet

  • Only use secured websites that contain an "https" address or a "closed padlock," both of which indicate a secure site
  • Provide the information requested by the vendor
  • Print a copy of the order acknowledgement or receipt including a list of each item purchased, its price, sales tax, shipping and handling fees, and total amount

Purchases via Phone or Fax

  • Provide the information requested by the vendor
  • If sending by fax, ensure the supplier is aware that the fax is coming in order to minimize the risk of card fraud
    • Specifically authorize the amount to be charged when sending the card authorization
  • Ask the supplier to send you a receipt with an itemized list of each item purchased, its price, sales tax, shipping and handling fees, and total amount

Purchases at the Point of Sale

  • Most merchants use electronic swipe machines, but if your credit card information is taken on paper, make sure any carbon copies are destroyed
  • Obtain an accurate receipt with an itemized list of each item purchased, its price, sales tax, and total amount
    • Check the receipt before you leave the store
    • If the vendor does not provide a receipt with sufficient detail, you must supply any missing information in writing in the transaction documentation
Decorative separator line

Disputing a Charge

Reasons You Might Dispute a Charge

  • You did not authorize the charge
  • The charged amount does not match the receipt
  • The goods or services were not received in a reasonable amount of time
  • The supplier charged your card by mistake
  • The merchandise was returned

The Dispute Process

First, contact the supplier and attempt to resolve the dispute.

If you are unable to reach a resolution with the supplier, complete the U.S. Bank Dispute Form no later than 60 days after the transaction date. Fax the completed form to the U.S. Bank fax number shown on the form.

U.S. Bank will notify you in writing the results of its investigation. Often at the beginning of the process, U.S. Bank will issue a credit for the amount you are disputing. If the merchant proves it was a legitimate business transaction, U.S. Bank will charge the amount back to your card for a credit that was issued previously.

When credits or charge-backs are received, they must be reconciled and approved during the standard 15-day staging period in BFS.

Decorative separator line

Documentation and Review

Proper reconciliation and approval of transactions in BFS is an important part of the bluCard Program.

Careful and thorough processing ensures:

  • Purchases and documentation are in compliance with university policy
  • Errors or fraud are recognized quickly
  • The principle of Separation of Duties has been observed
  • All items paid for are received (or credits processed)
  • Transactions are charged to the correct chartstring(s)
  • Transactions are correctly posted to the Berkeley Financial System (BFS) General Ledger

Records Management

  • Each department or org node is the Official Office of Record for all original bluCard documentation, including any electronic archives
    • Files must be kept current and made available to the Berkeley Card Program or Audit and Advisory personnel upon request
  • Purchase documentation should be uploaded to the transaction in BFS as a comment and stored electronically in your department
  • Departments must retain original EPC purchase documentation for five (5) years after the close of the fiscal year in which the purchase was made
Decorative separator line

Reconciler Requirements

Gather

Gather receipts and other documentation:

  • Pre-approval documentation
  • Itemized sales receipt and/or invoice
  • Packing slip and/or evidence of receipt
  • Credit and/or returns documentation

Compare

Compare receipts and other documentation with details in BFS:

  • Transaction amount
  • Chartstring distribution
  • Item description

Resolve

  • Resolve discrepancies in chartstring distribution and items ordered compared to items received
  • Modify chartstring
  • Upload documentation
  • Add descriptions and/or comments to clarify and provide detail

Verify

  • Verify reconciliation is complete and provide documentation to the BFS approver
  • Once reconciliation is complete, the reconciler must change the status to 'Verified' and save the transaction
  • Provide documentation with adequate time for the BFS approver to review and approve before the Clear Date

Reconciler Best Practices

  • As the BFS approver needs sufficient time to review within the 15 day staging period, the reconciler should finish by an earlier verification deadline they both agree to
  • Familiarizes themselves with sales and use tax requirements
  • Adds notes to paper or online documentation to explain aspects of the transaction that are not self-evident
    • If key information is found in email correspondence, please make sure to include copies in the transaction file
  • Lets the BFS approver know if they will be away for a period of days so that arrangements can be made to ensure transactions are processed in their absence
Decorative separator line

Approver Requirements

  • Reviews verified transactions in BFS along with related documentation to confirm reconciliation and tax handling are complete and correct
  • Notifies the cardholder/reconciler of any errors
    • If the errors are unfixable (for example, the purchase of a restricted item), please document this via email or other record that is kept with the transaction documentation for auditing purposes
  • Sets the reviewed transactions as 'Approved' in BFS, and retains documentation according to department procedures

Approver Best Practices

  • Regularly monitors the BFS staging table to ensure all transactions are being reconciled and verified in BFS
  • If the reconciler is not available, the BFS approver can make necessary modifications in BFS to accrue use tax or modify chartstring before the transaction leaves the staging table
  • Arranges for coverage during planned absences
Decorative separator line

BFS Staging Table Deadlines

Billing Date

  • Date the transaction is charged to UC Berkeley by U.S. Bank
  • This is one of the dates shown on the BFS Reconciliation screen
  • Usually three (3) business days before the Staging Date

Staging Date

  • Day 1 of the 15-day staging period
  • Transactions are loaded into the BFS staging table each business day
  • During the staging period, transactions are available for reconciliation, verification, and approval

Clear Date

  • 15 calendar days after the Staging Date
  • Final day that transactions are available for editing in BFS
  • Transactions load to the General Ledger whether or not they have been reconciled, verified, or approved
Decorative separator line

Safeguarding your bluCard

  • Keep your card in a safe and secure place
    • The bluCard should be kept locked up when not being used
  • Only provide the credit card number to the supplier from whom you are going to purchase
    • Never share your card or card number with another staff member
  • Immediately report a lost or stolen card
  • Black out all but the last four digits whenever the entire credit card number is displayed on documentation
  • Never send your account number by email
Decorative separator line

Loss, Theft, or Fraud

If you notice a transaction that you do not recognize, immediately call U.S. Bank at 800 344 5696, and report the fraudulent transaction. Their agent will close your card and issue a new one to the address you have on file. It can be helpful to have a list of recent transactions ready, so that you can verify which ones are legitimate.

If the card was stolen or used fraudulently, you must file a Police Report and obtain a report case number. You can contact them either via email at police@berkeley.edu, or via their Non-Emergency Line at 510 642 6760.

Complete a Loss, Theft, or Fraud Form and submit it to Card Program Services. The Police Report Case Number must be included on this form. Your new card cannot be activated until this form has been submitted.

Decorative separator line

Audit Program

Audit responsibilities are shared by all Card Program participants.

Department Responsibilities

  • The authorized and delegated signer ensures appropriate procedures are established and followed
  • The cardholder ensures purchases are made according to policies
  • The reconciler ensures documentation and charges support transactions
  • The approver ensures that transactions are reconciled and documented

Berkeley Card Program

  • Reviews available system documentation regularly for appropriateness
  • Conducts random post-transaction review of department documentation

Audit and Advisory Services

  • Conducts post-transaction audit of department documentation, and may take enforcement action, if necessary

Transactions are audited for policy and procedural compliance using several methods:

Reconciliation and Approval compliance

  • Transactions are regularly reviewed to ensure they were properly set to 'Approved' status prior to the clear date in BFS

MCC exceptions

  • Transactions made against typically blocked MCCs are reviewed to ensure the business purpose given for the exception matches the purpose of the actual transaction

High-value transactions

  • Transactions over a certain threshold will be audited in detail for policy compliance

Paperwork audits

  • A physical review of transaction paperwork for policy compliance

'Payment Alert' emails

  • U.S. Bank regularly emails the Card Program with information regarding transactions that may violate program policies

L3 vendor data vs. BFS data

  • Many vendors send detailed information regarding what you are actually purchasing from them
    • This is compared to information in BFS to ensure accuracy during reconciliation

Tips to Ensure Your Transactions Pass Audit

  • Ensure that your documentation "tells the story" of your transaction
    • Someone from outside your unit should be able to fully understand why the purchase was made based on your paperwork
  • If something went wrong with your transaction, or if something was out of the ordinary, please make a note to the file detailing what happened
  • If you have a question about your documentation or transaction, please email creditcard@berkeley.edu and the Card Program will be happy to help you figure out the best way to move forward
  • For more information on documentation requirements, please refer to the Card Program Documentation Requirements page
Decorative separator line

Back to the Top of the Page